Discussion at Samruk Kazyna Centers Around Investment, Infrastructure Expansion, and Digital Advancement
A Fresh Take on Kazakh Investment Strides
ASTANA - Kazakh Prime Minister Olzhas Bektenov emphasized the importance of private investment in expediting major infrastructure, industrial projects, and digitalization while stressing the necessity of effective monitoring to ensure timely and budget-friendly project completions, during a Feb. 10 board meeting with Samruk Kazyna Sovereign Wealth Fund.
The meeting primarily focused on the fund's future growth and 2024 performance, in line with President Kassym-Jomart Tokayev's directives at a Jan. 28 expanded government meeting.
Nurlan Zhakupov, board chairman, detailed significant investment schemes, including the strengthening of Ekibastuz State Regional Power Plant's (GRES-1) unit 1, with a capacity boost to 4,000 megawatt (MW). He also discussed the implementation of a gas infrastructure project for Almaty Combined Heat and Power Plant-2 (CHP-2) and CHP-3, as well as environmental enhancements.
Key projects include the introduction of a fifth compressor at Karachaganak field and the development of a cargo terminal in Xian to bolster Kazakhstan's transport and logistics sector. Additionally, over 250 kilometers of gas pipelines and 500 kilometers of railway tracks were constructed, with a 132-kilometer section of the Dostyk-Moiynty railway seeing train services commence. Innovative projects like a pumped storage station and Kazakhstan's first digital substation in Astana have also been initiated.
Presently, 46 investment projects are underway in various sectors, including oil and gas, energy, transport, and petrochemicals, valued at 33.3 trillion tenge (US$64.9 billion).
For 2024, significant projects include the gas supply to 66 settlements in the Zhetisu Region through the Taldykorgan-Usharal pipeline, a desalination plant in Kenderli to address water shortages, and improvements to the Trans-Caspian International Transport Route (TITR) and Dostyk-Moiynty railway.
Efforts are also currently underway to finish the second section of the Beineu-Bozoi-Shymkent gas pipeline and expand fuel hydrotreating and bitumen production capabilities. Local content in projects is expected to reach 85% for transport and logistics, 60% for energy, and 80% for other sectors.
In 2024, contracts worth 1.1 trillion tenge (US$2.1 billion) were inked with domestic producers, a 76% increase from the previous year, while off-take contracts saw a tenfold increase to 191 billion tenge (US$372 million). The fund's procurement process now adheres to high standards set by international bodies such as the European Bank for Reconstruction and Development (EBRD) and the Organization for Economic Cooperation and Development (OECD).
Samruk-Kazyna, the Sovereign Wealth Fund of Kazakhstan, is actively pursuing key investment projects and initiatives that align with President Tokayev's directives. Some of the major projects and initiatives for 2024 and beyond include:
- Multi-Sector Investment Projects: Samruk-Kazyna is overseeing 46 investment projects across sectors including oil and gas, petrochemicals, energy, transport and logistics, and mining.
- Container Hub at Aktau Port: A container hub was commissioned to increase cargo carriage and strengthen Kazakhstan's position in international routes.
- International Logistics Terminal Zhetysu: An international logistics terminal with a capacity of 115,000 TEU was put into service in Almaty, co-developed with China’s Xi’an port, to enhance transport connectivity between Kazakhstan, China, and European countries.
- Expansion of International Transit Capacity: Kazakhstan is expanding its international transit capacity by building more ports across Asia and Europe, including one in Abu Dhabi, to enhance trade through the Trans-Caspian Trade Route.
In addition to these projects, Samruk-Kazyna is involved in digital transformation initiatives like the development of a state-of-the-art AI supercomputer and data center, focusing on low-carbon development and digitalization, and reporting a 39% increase in net profit in 2024, reflecting the fund's successful implementation of investment projects. Traffic growth across the Trans-Caspian International Transport Route (TITR) also increased by 62% in 2024, indicating the success of transportation and logistics initiatives. Overall, Samruk-Kazyna plays a pivotal role in driving economic growth, enhancing infrastructure, and advancing digital capabilities in Kazakhstan.
- The Container Hub at Aktau Port, commissioned to increase cargo carriage and strengthen Kazakhstan's position in international routes, is one of the multi-sector investment projects overseen by Samruk-Kazyna, the Sovereign Wealth Fund of Kazakhstan.
- Engaged in digital transformation, Samruk-Kazyna is also developing a state-of-the-art AI supercomputer and data center, which aligns with Kazakhstan's focus on low-carbon development and digitalization. This digital advancement is expected to contribute significantly to the country's economic growth.
